CENTRAL BANK SHIFTS TOWARDS DEVALUATION

Tarek Amer, central bank governor, has recently made a remark on the current turbulence in the currency market, and stressed that stabilizing the price of the Egyptian pound had been a significant mistake that cost the state billions of dollars over the past five years. He also assured that the Central Bank of Egypt is prepared to undertake decisive actions and be mindful of the consequences to come.

Amer also added that the devaluation of the Egyptian pound carries major advantages such as increasing exports revenue and stimulate the economy.

These remarks came after the devaluation of the Egyptian pound against the American dollar by the CBE in March 2016, which is the second “expected” time to be devalued in the past few months.

The official exchange price for the Egyptian pound is currently 8.85 EGP for 1 US dollar, and 11 EGP for 1 US dollar in the black market.

The statements of Tarek Amer will be put in practice after the passing of Eid Al-Fitr holiday, as this delays the declaration of these crucial decisions.

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